Beginner's Guide: What is Bank Reconciliation Key Highlights Bank reconciliation is the process of comparing a company's bank statements to its own records to ensure all transactions are accounted for. It helps identify discrepancies and prevent fraud and theft from the bank account. Performing regular bank reconciliations is crucial for maintaining accurate financial records and […]
Understanding What Does Net 30 Payment Terms Mean Key Highlights Net 30 payment terms provide businesses with a 30-day period to pay their invoices It is a form of trade credit that allows businesses to extend financing to their customers Offering net 30 terms can attract more customers and improve customer relationships Net 30 […]
Small Business Benchmarks Demystified Key Highlights The ATO uses benchmark ratios and data to monitor small business performance. Falling outside the benchmarks can lead to audits or questioning by the ATO. ATO benchmarks are important for tax compliance and can help businesses review their operations. They prevent tax evasion by identifying businesses that may […]
Receipt versus Invoice: Unpacking the Variances Key Highlights An invoice is a request for payment issued before the customer pays, while a receipt proof of purchase issued after the payment is made. Invoices are critical financial documents that provide details about the transaction, including the total amount due and payment terms, while receipts confirm […]
Individual Contractor vs Employee: Key Differences Unveiled Key Highlights Understanding the key differences between employees and contractors is crucial when considering job Employees work someone else's business and receive benefits such as salary, superannuation, and paid leave Contractors are self-employed and have more flexibility in their working hours and location Legal distinctions include rights […]
Essential Tips for Superannuation for Sole Traders Key Highlights Superannuation is a voluntary but highly advisable program for sole traders to save for retirement and ensure future financial security. Sole traders have the flexibility to make personal contributions to their superannuation account and claim a tax deduction. Understanding superannuation guarantee and other regulations is […]
Simple Guide: How to Prepare a Cash Flow Analysis Key Highlights Cash flow analysis is crucial for business success as it provides insights into the movement of cash within a company. Understanding cash flow can help business owners make better decisions about spending and cutting costs. Cash flow analysis involves tracking cash flow from […]
How to Read and Analyse Financial Statements Key Highlights Financial statements, such as the income statement, balance sheet, and cash flow statement are essential tools for understanding a company's financial performance. Net income, gross profit, and cash flow are key indicators of a company's financial health and overall performance. Understanding and analysing financial statements […]
Understanding Financial Statements 101 Key Highlights Financial statements are essential for understanding the financial health of a business and making decisions. There are three main types of financial statements: the balance sheet, statement, and cash statement. By these statements, business owners can gain insights into their company's financial position, performance, and profitability. Understanding financial […]
